The UK Financial Conduct Authority has released its full crypto-asset regulatory framework and confirmed that the licensing window for crypto firms will open in September and remain available until February 28, 2027. The new regime is scheduled to come into force on October 25, 2027, setting a defined timetable for how crypto businesses will be authorized to operate in the country.
Exchanges, custodians, stablecoin issuers, and staking firms fall within scope
Under the framework, trading platforms, custodial service providers, stablecoin issuers, staking firms, and other intermediaries will need FCA approval to conduct business in the UK. The structure points to a single supervisory model with clearer rules across multiple categories of crypto activity, rather than a patchwork approach focused on isolated services.
The timeline fits into a wider UK policy effort around payments reform. In April, the government said it would overhaul payment regulations to support new payment technologies, including stablecoins and tokenization. On April 21, HM Treasury and Economic Secretary to the Treasury Lucy Rigby said reforms to payment services and e-money rules would be opened to public consultation.
Stablecoins and tokenized deposits are being brought under one umbrella
The planned reforms are designed to place conventional payments and tokenized payments inside the same regulatory framework. In that system, stablecoins and tokenized deposits would both be formally recognized. The National Payments Vision was first published in November, and the updated roadmap expands the focus beyond upgrades to existing rails by making room for new financial instruments in everyday payment flows.
HM Treasury said tokenization and new forms of digital currency can help modernize payment systems and support a broader, more diverse multi-currency ecosystem. The revised roadmap also treats programmable payments based on tokenization as a product-level regulatory priority, while officials work toward infrastructure that would let emerging digital currencies interoperate with traditional payment systems.
Bank of England is also weighing longer settlement hours
Alongside the FCA framework, the Bank of England proposed in May that settlement system operating hours should be extended to cover most of the day. The move is part of a broader effort, coordinated with the FCA, to improve the UK’s readiness for tokenized finance in wholesale markets. The central bank said longer hours could support cross-border payments and new settlement models as tokenization develops.
The Bank of England plans to collect feedback on the proposal until July 3 and expects to publish a response report during the summer. Separately, the FCA has also said that tokenization and distributed ledger technology could improve efficiency in fund management and support innovation in the UK asset management sector.